Task 2 Stone Absorption costing (over- and under absorbtion) Marginal costing Stine is drafting a budget on the absis of the following data: Direct material Direct labour Variable production expenses Fixed production overheads are budgeted at Normal output The selling price is fixed at Information about production and sales Production Sales January units 7 500 000 5 10 $ per unit 5 $ per unit 8 $ per unit. i) absorption costing ii) marginal costing c) Compare Net profit and make a conclusion 27 000 9 000 30 $ per unit. February units 500 8 8 500 $ per month and units per month; March units 9 000 9 500 (a)Prepare a cost card using absorption and marginal costing (b)Set out Income Statements for the months of January and February, using 90 % capacity.
Task 2 Stone Absorption costing (over- and under absorbtion) Marginal costing Stine is drafting a budget on the absis of the following data: Direct material Direct labour Variable production expenses Fixed production overheads are budgeted at Normal output The selling price is fixed at Information about production and sales Production Sales January units 7 500 000 5 10 $ per unit 5 $ per unit 8 $ per unit. i) absorption costing ii) marginal costing c) Compare Net profit and make a conclusion 27 000 9 000 30 $ per unit. February units 500 8 8 500 $ per month and units per month; March units 9 000 9 500 (a)Prepare a cost card using absorption and marginal costing (b)Set out Income Statements for the months of January and February, using 90 % capacity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Task 2
Stone
Absorption costing (over- and under absorbtion)
Marginal costing
Stine is drafting a budget on the absis of the following data:
Direct material
Direct labour
Variable production expenses
Fixed production overheads are budgeted at
Normal output
The selling price is fixed at
Information about production and sales
Production.
Sales
January
units
7 500
000
5
10 $ per unit
5 $ per unit
8 $ per unit.
i) absorption costing
ii) marginal costing
c) Compare Net profit and make a conclusion
27 000
9.000
30 $ per unit.
February
units
8500
8 500
$ per month and
units per month;
March
units
9.000
9 500
(a)Prepare a cost card using absorption and marginal costing
(b)Set out Income Statements for the months of January and February, using
90 % capacity.
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